What do you think extra ordinary economic growth of China in last three decades is dependent upon what?
- Cheap labor
- Economies of Scale
- Low production cost
- Globalization
All the above, in addition Chinese makers improved the quality of their goods!
Dear Rai,
All that you said, and Dr. Obaid and Dr Olusola, and much more. Policymakers are oriented to a big change and it´s working.
All you mentioned in detail your question, in addition to the leaders of China and their people know what they want in this world contending, and plan for the future.
While Chinese governments have managed the Chinese economy, they are not the reason for its present success.
Both the USA and Japan invested in the Chines economy about 30 odd years ago, opening up in effect new markets for themselves. The Chinese government had requested such help. Those markets depended on and grew largely through internal market competition, the government of the time taking a back seat. Internal growth created the growth of infrastructure, which created more growth, but also a spread into external markets.
Where external markets were concerned the Chinese were aided by Hong Kong and coastal/westernised cities such as Shanghai where something like free-markets flourished.
The Chinese success is less about skilled management, a myth created by Chinese leaders and propagated by their academics, than opportunity and opening the country up economically.
Thanks Stanley Wilkin for adding very elaborated and different perspective of Chinese growth
The truth. Opening up the internal market to competition was the key. China is huge, with different provinces each unwilling to cooperate with the other and a fixed, rigid planned economy, controlled by central office, allowing for non-productivity. Once this was changed, through the influence of USA, Japan, Hong Kong, and actually Taiwan as well, the economy started heating up.
All of the above. In addition, China grasps every business opportunity and makes good use of it to boom its economic share. Great strategies that developing countries must mimic.
Chinese politicians gained from employing academic economists to overview the economy, in fact except for its original surge, the Chinese economy can be said to be one of the first to follow economist's advice. When to slow production, the importance of providing on a debt-basis to other countries, seeking out cheap resources, engaging with other countries without the intrusion of ideology, but preserving own borders.
Cheap workforce and greedy companies from Europe and the USA, who want to earn a lot and reduce the risk of incurring additional costs.
Mindest of government
Attitude of people
Cost effective products manufactured
Rai, thought I'd upload my work on the matter, even though it was publish about a year or so ago.
Stanley Wilkin Thanks for sharing very useful informative and relevant publication.
Depends upon the market...
China is having a global market..
That's the reason they are growing continuously and the high inflation rate
Artificially set ratio of the Chinese yuan to the US dollar. Hence, export is profitable for the Chinese. Large country is rich in raw materials, there is no need to import - hence China's large trade surplus (which is one of the reasons for the US frustration). Chinese economy is stimulated by large central investment. The lack of stringent standards of work safety and environmental protection, such as in Europe, lowers the cost of production in relation to, for example, European economies.
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